It also expressed concern at the declining labour productivity rate.

Referring to the United Nations Conference on Trade and Development (Unctad) sixth LDC report, the MCCI called for measures to enhance the country's productive capacities.

According to the Unctad report, in FY 2002-03, the least developed countries (LDCs) required on an average five workers to produce the amount a worker can produce in developing countries, while 94 LDC workers can match with the productivity of a single worker in a developed country.

The MCCI extended its support to the suggestions made by the Unctad saying that constrains such as development of physical infrastructure and elimination of institutional weakness to woo private investment should be addressed.

The editorial said productivity cannot be raised without addressing both demand and supply constraints, but the present government and donors' policies generally neglect demand as a source of growth.

It further said increased domestic and international demand for a country's products is critical for a good investment climate and it also provides a basic stimulus for raising productivity.

On up-gradation of the export base, the MCCI referring to the Unctad report said the positive contribution of exports to relaxing balance of payment constraints has seriously been eroded by trade and currency depreciation.

Echoing the Unctad, the metropolitan chamber called the rich nations to enhance their support for trade and market access of the LDC products.

It said, "A favourable international enabling environment and enhanced international support in the areas of trade and aid will not only be good for the LDCs, because these will help their efforts to attain the millennium development goals (MDGs) of halving poverty by 2015, but also for the world as a whole."